The Packaging Department started the month with 600 units in process, received 1 comma 200 units from the Finishing Department, and transferred 1 comma 500 units to Finished Goods. Direct materials are added at the beginning of the process and conversion costs are incurred evenly. The units still in process at the end of the month are 60 % complete for conversion costs. Calculate the number of units still in process at the end of the month and the equivalent units of production. The company uses the weighted-average method.

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Chief

Business

3 June, 07:33

The Packaging Department started the month with 600 units in process, received 1 comma 200 units from the Finishing Department, and transferred 1 comma 500 units to Finished Goods. Direct materials are added at the beginning of the process and conversion costs are incurred evenly. The units still in process at the end of the month are 60 % complete for conversion costs. Calculate the number of units still in process at the end of the month and the equivalent units of production. The company uses the weighted-average method.

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Rebekah Casey · Answer 1

Answer and Explanation:

The computation of number of units at the end and the equivalent units is shown below:-

Production cost report - Packaging department

Equivalent unit

Units Physical Transferred Direct Conversion

unit in material Costs

Units to account for

Beginning work in 600

process

Units started 1,200

Total units to

account for 1,800

Units accounted for

Units transferred out 1,500 1,500 1,500 1,500

Ending work in

process unit 300 300 300 150

(300 * 50%)

Total units

accounted for 1,800 1,800 1,800 1,650